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It is an ecosystem, of course traders with fast computers would try to fill all the niches they can. Take a look at a broader picture: http://www-rcf.usc.edu/~l
by gaika 14y ago
It is an ecosystem, of course traders with fast computers would try to fill all the niches they can. Take a look at a broader picture: http://www-rcf.usc.edu/~lharris/ACROBAT/Zerosum.pdf http://www-rcf.usc.edu/~lharris/ACROBAT/Zerosum.pdf
Is suspect those in "Panel C: Losers who expect to profit from trading but will not" are complaining the most.
- seeingfurther 14y agoYou're citing a very old paper that makes no mention of HFT? Not sure I follow the reasoning for the citation. No one is saying that speculative traders don't serve a function in the market place. However you said "HFT serves the same purpose that human Market Makers and Specialists" when it has been proven they don't. HFT want you to believe that they serve some altruistic purpose to the marketplace to legitimize their existence. The truth is that HFT serves as a quasi-tax on each and every share traded because to execute a trade in today's marketplace non-HFT volume almost invariably passes through the hands of HFT volume thereby shaving pennies of profit off each trade.